Acquisitions, Dispositions, Goodwill and Other Intangible Assets

Business Acquisitions and Dispositions. During the six months ended June 30, 2014, our cash investment in business acquisitions was $84 million, and consisted of a number of small acquisitions, primarily in our commercial businesses.

As a result of the 2012 transactions related to IAE International Aero Engines AG (IAE), Pratt & Whitney holds a 61% net interest in the collaboration and a 49.5% ownership interest in IAE. IAE's business purpose is to coordinate the design, development, manufacturing and product support of the V2500 program through involvement with the collaborators. IAE retains limited equity with the primary economics of the V2500 program passed to the participants in the separate collaboration arrangement. As such, we have determined that IAE is a variable interest entity with Pratt & Whitney its primary beneficiary, and IAE has, therefore, been consolidated. The carrying amounts and classification of assets and liabilities for IAE in our Condensed Consolidated Balance Sheet as of June 30, 2014 are as follows:



(Dollars in millions)
Current assets	$	2,006
Noncurrent assets	1,157
Total assets	$	3,163

Current liabilities	$	2,121
Noncurrent liabilities	1,187
Total liabilities	$	3,308

Goodwill. Changes in our goodwill balances for the six months ended June 30, 2014 were as follows:



(Dollars in millions)	Balance as of January 1, 2014		Goodwill Resulting from Business Combinations		Foreign Currency Translation and Other		Balance as of June 30, 2014
Otis	$	1,741	$	22	$	20	$	1,783
UTC Climate, Controls & Security	9,727		9		92		9,828
Pratt & Whitney	1,273		—		—		1,273
UTC Aerospace Systems	15,069		—		67		15,136
Sikorsky	353		—		—		353
Total Segments	28,163		31		179		28,373
Eliminations and other	5		—		—		5
Total	$	28,168	$	31	$	179	$	28,378

Intangible Assets. Identifiable intangible assets are comprised of the following:



	June 30, 2014					December 31, 2013
(Dollars in millions)	Gross Amount		Accumulated Amortization			Gross Amount		Accumulated Amortization
Amortized:
Service portfolios	$	2,279	$	(1,369	)	$	2,234	$	(1,295	)
Patents and trademarks	383		(190		)	380		(181		)
IAE collaboration	2,588		(10		)	2,273		—
Customer relationships and other	12,232		(2,480		)	12,049		(2,199		)
	17,482		(4,049		)	16,936		(3,675		)
Unamortized:
Trademarks and other	2,282		—			2,260		—
Total	$	19,764	$	(4,049	)	$	19,196	$	(3,675	)

The customer relationships intangible assets include payments made to our customers to secure certain contractual rights. We amortize these intangible assets based on the underlying pattern of economic benefit, which may result in an amortization method other than straight-line. We classify amortization of such payments as a reduction of sales. The IAE collaboration intangible asset is amortized based upon the economic pattern of benefits as represented by the underlying cash flows. Prior to 2014, these cash flows were negative, and, accordingly, no amortization had previously been recorded. Amortization of intangible assets for the quarter and six months ended June 30, 2014 was $178 million and $357 million, respectively, compared with $176 million and $351 million for the same periods of 2013. The following is the expected amortization of intangible assets for the years 2014 through 2019, which reflects an increase in expected amortization expense due to the pattern of economic benefit on certain aerospace intangible assets.



(Dollars in millions)	Remaining 2014		2015		2016		2017		2018		2019
Amortization expense	$	347	$	679	$	688	$	706	$	731	$	703